News
Fund Review: Alpha Beta Asian Fund Review February 2015
15 Apr 2015 - Australian Fund Monitors
February Fund Review for Alpha Beta Asian Fund, an Asian Quantitative Fund, is now available. Get CPD Points for reading the review.
Read more...
15 Apr 2015 - Fund Review: Alpha Beta Asian Fund Review February 2015
By: Australian Fund Monitors
Alpha Beta Asian Fund AFM Fund Report Feb 2015 (pdf format)
ALPHA BETA ASIAN FUND
AFM has updated the Fund Review on the Alpha Beta Asian Fund.
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
Key points include:
- The Fund The Alpha Beta Asian Fund invests in Asian listed equity markets with a focus on liquid companies in Australia, Japan, Hong Kong, Indonesia, Philippines and Thailand. The Fund uses a systematic approach to evaluate macroeconomic, company fundamental and price data, all of which are evaluated through a series of quantitative models.
- Sydney based Alpha Beta Capital was established by Andrew Barry and Ken Lewis in May 2012. Both Barry and Lewis have significant qualifications and international experience in funds management, including working together at Coronation International, a global multi-strategy hedge fund group in London.
- The Strategy relies on a number of core beliefs: Firstly that a well designed systematic investment process, operating within a multi-strategy framework will be able to extract consistent returns, on average, with low volatility. Secondly, by utilising holding periods substantially shorter than the industry-norm, profit opportunities consistently arise. Finally, a strategy that holds a large number of small positions versus a small number of concentrated positions, will remove much of the emotional angst of trading, and the investment process becomes repeatable.
- In keeping with the Manager's overall systematic approach the Risk Management includes real time monitoring of positions and market exposure, and is combined into a proprietary and automated system called PARMS (Portfolio and Risk Management System). PARMS is a centralised and integrated system which provides full functionality including stress testing.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research Manager
Alpha Beta Asian Fund AFM Fund Report Feb 2015 (pdf format)
Fund Review: Supervised High Yield Fund February 2015
14 Apr 2015 - Australian Fund Monitors
Fund review on Supervised High Yield Fund, a fixed income fund, is now available. Also get CPD Points for reading the review.
Read more...
14 Apr 2015 - Fund Review: Supervised High Yield Fund February 2015
By: Australian Fund Monitors
SUPERVISED HIGH YIELD FUND
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
We would like to highlight the following aspects of the Fund:
- The Supervised High Yield Fund (SHYF) has a 5 year track record investing in fixed interest investments. The Investment strategy aims to deliver returns with zero correlation to equity markets by investing in debt securities with minimal default probability and offering a premium return above the risk free rate.
- The Fund is managed by Philip Carden whose experience in debt and capital markets spans 32 years, including time with JB Were's Capel Court Securities and Macquarie Bank, where he was the Executive Director responsible for the Debt Markets Division.
- SHYF is an Alternative Income fund which invests in Global and Australian debt markets, with all foreign currency receivables hedged back to Australian dollars.
- The Fund utilises a top down analysis of the economic environment and market to screen and identify debt market opportunities which it believes offer low risk with high yield. The next stage is the development of a risk matrix and investment strategy, following which detailed research is undertaken on specific investment opportunities which meet the pre-defined criteria established in the investment strategy.
- Prior to approving an investment for the Fund each potential investment is subject to two stress tests. The first of these is for credit and default risk, in which the investment is stress-tested to ensure that in a worst case economic environment it can repay 100% of its principal and interest obligations case scenario for the asset by examining the highest margin over the risk rate that the investment has previously experienced in a crisis situation. Any decline in value under the stress test that exceeds 10% of the Fund's value is avoided The second test examines market risk. In this case Carden looks at the worst case scenario for the asset by examining the highest margin over the risk rate that the investment has previously experienced in a crisis situation. Any decline in value under the stress test that exceeds 10% of the Fund's value is avoided.
Research and Database Manager
Australian Fund Monitors
Monash Absolute Investment Fund
13 Apr 2015 - Australian Fund Monitors
Monash Absolute Investment Fund rose 1.1% after fees in March, while the Australian Equity Market fell slightly -0.09%.
Read more...
13 Apr 2015 - Monash Absolute Investment Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The fund seeks to identify opportunities in the share market to make positive returns (long and short) irrespective of market conditions. It is style agnostic, as compelling investment opportunities exist across all investment styles from time to time. The Fund places a high priority on capital preservation, and has an absolute return focus in accepting market risk. The Manager's experience across value, growth and discounted cash flow styles allows them to use a comprehensive approach to investment decisions that applies all three. They also have the patience to seek out only compelling opportunities, rather than settling for relative value. The portfolio is somewhat concentrated, looking to diversify across industries and themes, rather than by trying to stay near an index. The portfolio may at times have a large amount of cash or other protection. However once investments are made turnover may be relatively high in order to lock in gains and avoid losses. |
| Manager Comments | The Manager's month-end exposure was net 79%, gross 10%,VAR 1.0%, with a beta of 0.53 for the portfolio. Over the last few months, as the market has risen, the Fund has been building their short positions. Some of the highs for the month came from strong gains in Netcomm Wireless (NTC) and from the Product Launch Companies. The biggest driver in the listed group of product launch companies was Catapult. However Greencross (GXL) and G8 Education were negative contributors to the Fund's performance. Read the Fund Manager's Monthly Commentary, now available on the Australian Fund Monitors website. |
| More Information | » View detailed profile of this fund |
Alpha Beta Asian Fund
10 Apr 2015 - Australian Fund Monitors
Alpha Beta Asian Fund rose 0.45% to bring the Fund's return since inception to 21.40%.
Read more...
10 Apr 2015 - Alpha Beta Asian Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The investment objective of the Fund is to produce positive annual returns without excessive risk. This is achieved through the use of a quantitative approach to invest both long and short in large cap companies listed on Asian stock exchanges. The Fund may also use index futures to manage risk. Stock prices and company fundamental data are decomposed into directional and mean reverting components. Each of Alpha Beta's models are based on either of these known behaviours with capital management built into each model. The benefit of a quantitative approach is that it is both repeatable and unemotional, and allows a different source of returns to be extracted from a very noisy market environment. |
| Manager Comments | The Fund's February's performance was driven by strong contributions from the statistical arbitrage models as well as significant loss aversion from the order pad checks, which were balanced by relatively weak performance on the quantamental side across multiple factors. At month-end the Fund had a gross exposure of 289% and a net exposure of -2% across 518 positions. Most of the contribution for the month came from the Taiwan and Japan positions at 0.48% and 0.39% respectively. However Australia and Korea positions were negative contributors at -0.57% and -0.25% respectively. In addition, the Fund is making ongoing operational efforts to setup the Cayman vehicle and Hong Kong licensing. |
| More Information | » View detailed profile of this fund |
Supervised High Yield Fund
9 Apr 2015 - Australian Fund Monitors
Supervised High Yield Fund rose 0.38% in February to bring the Fund's annual return since inception to 10.30%. In the same time frame the RBA Cash Rate returned 3.50%.
Read more...
9 Apr 2015 - Supervised High Yield Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The fund may also invest in interest rate swaps, options over authorized investments and exchange traded futures contracts. All these will be either listed or traded in a market where they can be independently valued. Fundamental to the investment procedure is the tenet that no debt security will qualify for investment unless it can repay 100% of its principal and interest in a worst case economic scenario. |
| Manager Comments | More than half of the portfolio's composition was in Residential Mortgage-Backed Securities (RMBS) at 54.00%. The rest of the portfolio was divided in the following sectors: Corporate Loan Services (27.00%), Cash (15.00%) and Hedges (4.00%). The Sharpe ratio for the Fund was 3.09 with only 1 negative month since inception in 2009. |
| More Information | » View detailed profile of this fund |
Fund Review: Insync Global Titans Fund February 2015
9 Apr 2015 - Australian Fund Monitors
The Fund's unit price in February increased by 4.90%. Read February Fund Review and get CPD points.
Read more...
9 Apr 2015 - Fund Review: Insync Global Titans Fund February 2015
By: Australian Fund Monitors
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans Fund.
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
We would like to highlight the following:
- The Fund's unit price increased by 4.90% in February. The performance was driven by positive contributions from our holdings in Nestle, Reckitt Benckiser, Experian and Sanofi as well as the weaker Australian dollar. The main negative contributors were Time Warner Cable, Microsoft and Discover Financial Services. The Fund continues to have no foreign currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside.
- The Global Titans Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research Manager
Australian Fund Monitors
Signature Quantitative Fund
8 Apr 2015 - Australian Fund Monitors
Signature Quantitative Fund returned -1.30% bringing the Fund's annual performance since inception to 14.98%.
Read more...
8 Apr 2015 - Signature Quantitative Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | SQF has been established to profit from anomalies surrounding event driven, behavioural & factor based structural market inefficiencies which generate significant profits and are uncorrelated & persistent over time. Specific strategies such as dividend arbitrage, index addition and deletion, tax year end, capital raisings, among other strategies are used by the Fund. The Fund's initial focus is on investing in Australian and New Zealand markets. |
| Manager Comments | In February, the Alpha Capture and Capital Raising Strategies were positive contributors to the Fund's return. The Index Re-balance Strategy contributed negatively mainly due to the following stocks; Pacific Rubiales Energy (-92bps), Penn West Petroleum (-81bps) and Denbury Resources (-39bps). The Dividend Arbitrage Strategy also under-performed in February, where the long positions outperformed the market, but the short positions out-performed the long positions. Read the complete Monthly Report from the Fund on AFM website. |
| More Information | » View detailed profile of this fund |
Fund Review: Totus Alpha Fund February 2015
8 Apr 2015 - Australian Fund Monitors
February Fund Review with key statistics for Totus Alpha Fund now available. CPD Points also available.
Read more...
8 Apr 2015 - Fund Review: Totus Alpha Fund February 2015
By: Australian Fund Monitors
Totus Alpha Fund AFM Review February 2015 (pdf format)
TOTUS ALPHA FUND
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
We would like to highlight the following aspects of the Fund;
- Totus Capital is a Sydney based long short fund manager established in 2012 by Ben McGarry which aims to place equal emphasis on performance and capital preservation. The Fund invests mainly in Australia, but also in other developed economies, with a primary exposure to equity markets.
- The Totus Alpha Fund?s investment strategy is to identify structural themes, and then seek to drive performance by investing in securities that have concentrated exposure to those themes. Single stock short positions are used to generate alpha, frequently in under researched parts of the market such as the small and mid-cap space. Index derivatives are used to hedge the portfolio?s market risk.
- McGarry qualified as a Chartered Accountant with PWC in 1999 and has 14 years market experience, commencing his career covering European building materials and construction sectors at Morgan Stanley in London. Previous experience included analytical roles at Ausbil, a Sydney based $10bn+ long-only manager, and sell side emerging companies experience at UBS. McGarry?s emerging company research with UBS included exposure to a range of sectors including energy, materials, industrials, tech, financials, retail and telecommunications.
- The Fund has delivered an annalised return of 26.00% since inception in March 2012 as compared to 16.31% for the ASX 200 Accumulation Index. The standard deviation has been higher than the Index at 13.09% as compared to 11.35% and the Sharpe ratio is 1.63.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Totus Alpha Fund AFM Review February 2015 (pdf format)
KIS Asia Long Short Fund
7 Apr 2015 - Australian Fund Monitors
KIS Asia Long Short Fund was flat (0.09%) in February. Since inception the Fund's annual return was 14.61% p.a.
Read more...
7 Apr 2015 - KIS Asia Long Short Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | Whilst the Fund's primary strategy is focused on long/short equities, the ability to retain discretionary powers to allocate across a number of other investment strategies is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage, special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.). The Fund's geographic focus is Asia excluding Japan, but including Australia). The Fund may invest outside of this region to the extent that: 1. The investment decision is driven from the Asian region or; 2. The exposure is intended to mitigate risk or enhance return from factors external to the Asian region. |
| Manager Comments | The portfolio gained 22bp in February due to the Long Short strategy. The Fund's long names contributed 314bp whilst the short positions costed 299bp. On a market cap basis, the Fund's main long was in small caps, which created a profit of 85bp. The most notable contributors in small cap names were Freelancer (FLN. AX) at 24bp and Nirvana Asia Ltd. (1438.HK) at 16bp. HK was an unsuccessful Hong Kong IPO which created a great opportunity to buy value being the cheapest death care service provider in the region and cheap on a global scale. The Portfolio Hedge, Arbitrage, Convertible Bonds and Special Situations Strategies did not make any substantial impact, sum costing the fund 10bp as a total. The impact of interest rate differentials reduced the performance of the US$ series by 25bp. Read the complete Fund Manager's commentary on the AFM website. |
| More Information | » View detailed profile of this fund |
The Paragon Fund
3 Apr 2015 - Australian Fund Monitors
The Paragon Fund returned 3.60% (ASX 200 Accum 6.89%) during February and Since inception the fund has returned +47.05% after fees versus the market (Index) +26.63%
Read more...
3 Apr 2015 - The Paragon Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | Paragon accepts that markets are not always efficient in pricing information into securities and that no one investment style works in every stage of the investment cycle. Subsequently Paragon adopts a top down thematic led approach to identify companies exhibiting sustainable or improving returns on capital driven by volume growth, pricing power and competitive advantages. Paragon utilises both quantitative analysis to provide probability weighted high/low/base case valuations and qualitative analysis in assessing management, the business model and likely direction of returns. Paragon will allocate assets to each investment opportunity based on a risk/reward profile. Positions have defined investment parameters and risk limits, which are then monitored on an ongoing basis. |
| Manager Comments | Key drivers of the Paragon Fund's performance for February included solid returns from industrial firms Regis Healthcare, Qantas and Orora, from diversified financials Macquarie Bank and Henderson Group, and Nanosonics. At the end of the month the fund had 29 long positions and 7 short positions. Read the complete Fund Manager's commentary on the AFM website. |
| More Information | » View detailed profile of this fund |
